Business Energy Scandal

04/09/2026

BUSINESS ENERGY SCANDAL – SEPTEMBER 2026 UPDATE

It has been some time since this page regularly covered the mis-selling of commercial energy contracts and the undisclosed commissions paid to energy brokers. There have been some important developments.

Earlier this year, the Supreme Court allowed the appeal in Expert Tooling & Automation Ltd v Engie Power Ltd by consent, following its judgment concerning undisclosed commissions in the motor finance cases.

Expert Tooling had entered into five electricity contracts through broker Utilitywise. It knew that Utilitywise would receive commission from Engie but did not know the amount. Across the five contracts, that commission totalled £130,449.70 and was incorporated into the electricity price paid by the customer.

Another case, Leicester Indoor Bowls and Social Club Ltd v Drax Energy Solutions Ltd, is progressing through the courts. The broker received commission of 3.5p per kWh consumed by the club. At trial, this was calculated as approximately 37% of the daytime electricity rate and 45.8% of the night-time rate. The case is now proceeding to a High Court appeal.

The issue has certainly not disappeared.

Research published by Octopus Energy this week, based on a YouGov survey of 1,034 UK SME decision-makers, found that 25% did not know energy brokers may receive commission. Among micro-businesses the figure was one in three.

The same research found that 77% believe broker commission should be clearly disclosed, only 27% strongly understand how their energy bill is calculated and 46% regard the business energy market as confusing or unfair.

For many years businesses were encouraged to use brokers to find competitive commercial energy contracts. What many were not told was precisely how those brokers were being remunerated or how much commission was being incorporated into the unit price they would pay throughout the contract.

The scale of the commissions revealed in the cases now reaching the courts shows why that distinction matters. Business Energy Scandal will be following the court cases, regulatory developments and wider industry response as this unfolds.

30/03/2026

There’s a growing issue around how business energy contracts have been sold in the UK.

Many companies signed long-term deals through brokers — not always realising that commissions were built into the price they pay for energy.

A recent Supreme Court development suggests that simply being told “there is a commission” may not be enough — businesses should have understood how much and how it worked.

That could have big implications.

This article explains it clearly without trying to sell anything:
https://www.legalfutures.co.uk/latest-news/supreme-court-boosts-consumer-firms-eyeing-business-energy-claims

Consumers claims law firms will be sizing up the business energy claims market after the Supreme Court allowed a key appeal on undisclosed commissions by consent.

23/12/2025

2026 appears to be the make or break year for business energy contract mis-selling claims, everything is currently stalled and little can be added at the moment.

We will update this page with news when it is available. Then, hopefully, it will be full steam ahead.

02/09/2025

NEWS UPDATE

The business energy contract misselling market is currently paused pending the Supreme Court conclusion on the "Expert Tooling" case. We're finding that self-funding law firms are hitting a brick wall because suppliers know that litigation funding is not currently available. Mainstream ATE insurance policy providers won't insure the cases until the Expert Tooling case is complete.

It is possible to get an individual bespoke ATE policy as long as a barrister's opinion states that it is a good and solid case but it is very costly. This is why everything is being parked for now.

Our advice for now is to secure your documentation and follow this page. If you haven't yet dug out your old energy broker contracts and any relevant correspondence, now is the time to start.

The Supreme Court is due to rule on the case next year and we'll be following it intently.

24/07/2025

The UK is witnessing a significant rise in efforts to address business energy contract mis-selling, leading to the emergence of a dedicated industry focused on supporting affected businesses.

Growth of the Business Energy Claims Sector

The market for energy brokers, known as Third Party Intermediaries (TPIs), has expanded rapidly, increasing from £232 million in 2014 to £525 million in 2024. However, this growth has been accompanied by a rise in complaints about mis-selling practices, including undisclosed commissions and misleading sales tactics.

In response, a specialized industry has developed, comprising legal firms, claims management companies, and advocacy groups dedicated to assisting businesses in reclaiming funds lost due to these practices.

Legal Developments and Support Mechanisms

A pivotal Court of Appeal ruling in March 2025 clarified that brokers must transparently disclose all commissions and fees. This decision has empowered businesses to challenge unfair contracts and seek compensation for hidden charges. This is where Business Energy Scandal comes into the picture.

Industries Most Affected

Small and medium-sized enterprises (SMEs), particularly in sectors like hospitality, manufacturing, and retail, are disproportionately affected. These businesses often rely on energy brokers and may face challenges in navigating complex contracts and identifying mis-selling.

✅ How to Determine If Your Business Was Mis-Sold an Energy Contract

If your business has engaged an energy broker in the past 25 years, consider the following indicators:

• Lack of Transparent Commission Disclosure: If the broker did not clearly disclose their commission structure or fees, this may be a red flag.

• Unexplained Charges: Hidden fees or charges not outlined in the contract could indicate mis-selling.

• High Commission Rates: Commissions constituting a significant portion of the energy cost may be excessive and warrant investigation.

• Pressure Tactics: If the broker employed high-pressure sales tactics or failed to provide adequate time for contract review, this could be a sign of misconduct.

🛠️ Steps to Take

Talk to us about having your energy contracts forensically analysed to pick up potential misselling, we can do this for you at no charge.

Our forensic auditing claims experts are ready to serve your business by looking to prove you have been mis-sold. Where a claim is identified, we will tell you how much is due back and we'll offer to collect it for you on No Win - No Fee terms.

You can discuss and hopefully start a claim right now by calling us on 01924 495555 or email us for more information: [email protected].

26/06/2025

Here is your regular reminder of what our service consists of:

Our mission statement is to help recover the millions of pounds that have been lost to complex and confusing billing, hidden commissions and aggressive broker tactics (this is a very competitive industry.

It's possible you have also been at the mercy of a defective direct debit mandate, we'll investigate this aspect too (at no cost to you).

Our forensic auditing claims experts are ready to serve your business by looking to prove you have been mis-sold. Where a claim is identified, we will tell you how much is due back and we'll offer to collect it for you on No Win - No Fee terms.

You can discuss and hopefully start a claim right now by calling us on 01924 495555 or email us for more information: [email protected].

29/05/2025

It's bad enough that potentially millions of businesses are unknowingly sat on compensation claims due to hidden commissions being removed from their bank accounts, then we find out how widespread the practice is for companies to be settling energy bills via dormant or invalid direct debit mandates.

What is an Indemnity Claim?

A Direct Debit Indemnity Claim is the method by which a payer can reclaim their Direct Debit payment back under the Direct Debit Guarantee. The bank is obliged to offer an immediate refund in the event that a Direct Debit has been taken in error, without authority or via a dormant mandate.

A bank indemnity claim can be disputed by the Service User within 14 working days if they can provide evidence that the Direct Debit was legitimately taken within the framework of the BACs Guide and Rules.

Businesses may not realise they have a valid indemnity claim, our experts are here to help and forensically analyse documentation.

What are Dormant Direct Debit Mandates?

A mandate becomes 'dormant' when it has not been used for a significant period of time (typically 13 months or more). This does not stop it being used to remove funds from bank accounts without its validity being checked. Turns out this is happening frequently.

Some direct debits are being used to extract funds to pay energy bills where they have not been set up correctly in the first place e.g. incorrect signatory or have been invalidated through a change of authorised personnel who has not been set-up as a new signatory.

What does all this mean for your business?

While we check your energy bills for items such as hidden commissions or whether you were on the best tariff, etc, we can also analyse your banking documentation and look for direct debit issues. We will do this at no cost to your business.

We will seek compensation for mis-selling of your energy contract and then go after refunds from your bank if we find direct debit mandate irregularities.

Call us on 01924 495555 to see if we can help your business.

23/05/2025

More details coming soon but another win for struggling businesses is just around the corner.

13/05/2025

Commercial energy contract mis-selling in the news again, this time in one of Scotland's main newspapers.

We disagree that this 'could be' the next mis-selling scandal - it already is!

Potentially millions of businesses due billions of pounds of compensation, this volcano is about to blow.

You can discuss and, hopefully, start a claim right now by calling us on 01924 495555 or email us for more information: [email protected].

Business Energy Claims could be the next mis-selling scandal

05/05/2025

We asked Grok (the AI element of X) the following question:

'Why have so few cases of business energy contract mis-selling been publicised?'

These are the most relevant parts of the answer:

Few cases of business energy contract mis-selling in the UK have been publicized due to a combination of regulatory, legal, and practical factors:

Unregulated Market: Unlike the domestic energy market, the UK’s business energy sector is largely unregulated, meaning businesses lack the same consumer protections as households. This allows rogue brokers to exploit vulnerabilities, such as misrepresenting contract terms or inflating costs, with limited oversight. The absence of a regulatory framework reduces the likelihood of formal investigations or public exposure.

Complexity and Lack of Awareness: Mis-selling often involves complex contract terms, hidden fees, or verbal agreements not reflected in writing, which many businesses fail to recognize as mis-selling until it’s too late. Business owners may not realize they’ve been misled or may lack the resources to pursue claims, reducing the number of cases brought to public attention.

Confidential Settlements: Many mis-selling disputes are resolved through private settlements or negotiations with energy suppliers _
System: or brokers, often under non-disclosure agreements (NDAs). These agreements prevent businesses from publicizing details, keeping cases out of the media and public domain. This practice benefits suppliers and brokers by avoiding reputational damage and further claims.

Limited Media Focus: Compared to high-profile consumer scandals like car finance or PPI mis-selling, business energy mis-selling affects smaller, less visible entities, making it less likely to attract widespread media coverage. The technical nature of the issue also makes it less accessible for mainstream reporting, reducing public interest and scrutiny.

Barriers to Legal Action: Pursuing legal action is costly and time-consuming, especially for small businesses already strained by high energy costs. The lack of a centralized redress scheme, unlike in regulated markets, means businesses must navigate disputes individually, often deterring them from escalating cases to a level that would gain public attention. OFGEM’s measures, such as access to the Energy Ombudsman, are relatively recent and not widely utilized.

Industry Reluctance to Self-Report: Energy suppliers and brokers have little incentive to report or publicize mis-selling, as it could lead to regulatory scrutiny or loss of business. The hospitality sector, for instance, has raised concerns about systemic overcharging, but without formal investigations by bodies like the Competition and Markets Authority (CMA), these issues remain under-reported.

In summary, the combination of an unregulated market, private settlements, limited media interest, and barriers to legal recourse keeps most business energy mis-selling cases out of the public eye. Recent calls for CMA investigations and OFGEM’s redress measures may increase visibility in the future, but systemic change is needed to address the issue fully.

Despite what you read above, cases are being brought and settled where we are able to prove mis-selling. We have the expertise and brilliant forensic auditors to recover the compensation you're due.

Despite what you read above, cases are being brought and settled where we are able to prove mis-selling. We have the expertise and brilliant forensic auditors to recover the compensation you're due.

You can discuss, and hopefully, start a claim right now by calling us on 01924 495555 or email us for more information: [email protected].